Note

–

Business acquisition

November 4, 2019,

we purchased the business of Schroff Technologies International, Inc. (“Schrofftech”), a Rhode Island-based manufacturer and marketer of intelligent thermal control systems used by telecommunications companies across the U.S. and Canada, and shrouds for small cell integration and installation. At the closing, in consideration for the Schrofftech business, we paid the sellers

million in cash, and, if certain financial targets are met by Schrofftech over a

two

-year period, agreed to pay additional cash earn-out payments of up to

$2.4

million.

The acquisition was accounted for as an acquisition of a business in accordance with the acquisition method of accounting. The acquired assets and assumed liabilities have been recorded at their estimated fair values. We determined the estimated fair values with the assistance of appraisals or valuations performed by an independent

third

-party specialist. Schrofftech serves the high growth wireless, telecom and cable markets. The Schrofftech business allows us to diversify the types of services provided for our customers in these markets. All manufacturing operations are performed at Schrofftech's facilities in Rhode Island.

Although the closing occurred on

November 4, 2019,

the acquisition of Schrofftech is deemed to have become effective for financial accounting purposes as of

November 1, 2019.

Accordingly, subsequent to

November 1, 2019,

Schrofftech's financial results have been included in the results of the Custom Cabling Manufacturing and Assembly segment (“Custom Cabling segment”) as well as in the consolidated statements of operations. Total costs related to the acquisition of Schrofftech were approximately

$151,000

and have been expensed as incurred and categorized in selling and general expenses during periods prior to

November 1, 2020.

The following table summarizes the components of the purchase price at fair values at

November 1, 2019:

Cash consideration paid	$	4,000,000
Earn-out liability		1,249,000
Total purchase price	$	5,249,000

The following table summarizes the allocation of the purchase price at fair value at

November 1, 2019:

Current assets	$	1,168,000
Fixed assets		58,000
Intangible assets		3,299,000
Goodwill		1,127,000
Non-interest bearing liabilities		(403,000	)
Net assets	$	5,249,000